DoD's $21.3M TEKSYNAP Contract for IT Support Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $21,297,988 ($21.3M)
Contractor: Teksynap Corporation
Awarding Agency: Department of Defense
Start Date: 2018-08-20
End Date: 2024-07-31
Contract Duration: 2,172 days
Daily Burn Rate: $9.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: TEST, TRANSITION,&INTEGRATION SUPPORT
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $21.3 million to TEKSYNAP CORPORATION for work described as: TEST, TRANSITION,&INTEGRATION SUPPORT Key points: 1. Contract awarded to TEKSYNAP CORPORATION for Computer Facilities Management Services. 2. Significant spending of $21.3M over its duration. 3. Competition method raises questions about price discovery. 4. Sector context: IT services within the Defense sector.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking CPFF contracts for similar IT support services is difficult without detailed cost breakdowns, but the overall value needs closer examination.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may restrict the pool of potential bidders and potentially impact price discovery, possibly leading to higher costs than a truly open competition.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for these essential IT support services.
Public Impact
Taxpayers may be overpaying due to restricted competition. Potential for cost inefficiencies in CPFF contracts. Ensuring effective IT infrastructure management for national security is paramount.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises value concerns.
- CPFF contract type can inflate costs.
- Lack of small business participation noted.
Positive Signals
- Contract supports critical Defense Threat Reduction Agency needs.
- Long-term contract provides stability for services.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer facilities management. Spending benchmarks for similar IT support contracts within the Department of Defense can vary widely based on scope and complexity, but $21.3M represents a substantial investment.
Small Business Impact
The data indicates that small business participation was not a factor in this contract (ss: false, sb: false). This suggests an opportunity missed to leverage small business capabilities and potentially foster innovation within the sector.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type warrants further review to ensure proper justification for excluding other potential bidders and to confirm that robust oversight was in place to manage the CPFF contract effectively.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Limited competition may lead to suboptimal pricing.
- CPFF contract structure poses inherent cost control risks.
- Lack of small business involvement.
- Need for detailed justification for source exclusion.
Tags
computer-facilities-management-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.3 million to TEKSYNAP CORPORATION. TEST, TRANSITION,&INTEGRATION SUPPORT
Who is the contractor on this award?
The obligated recipient is TEKSYNAP CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $21.3 million.
What is the period of performance?
Start: 2018-08-20. End: 2024-07-31.
What specific justifications were provided for excluding other sources in the competition?
The justification for excluding other sources is critical for understanding the limited competition. Without detailed documentation, it's difficult to assess if the chosen vendor was truly the only viable option or if the exclusion process was fair and competitive, impacting the government's ability to secure the best value.
How effectively were costs managed under the Cost Plus Fixed Fee structure?
CPFF contracts require diligent oversight to prevent cost overruns. Analyzing the final costs against the initial estimates and the fixed fee would reveal the effectiveness of cost management. Without this data, it's hard to determine if the government received good value or if costs escalated unnecessarily.
What is the measurable impact of these IT services on the Defense Threat Reduction Agency's mission effectiveness?
The ultimate measure of success for this contract is its contribution to the DTRA's mission. Assessing the reliability, security, and efficiency of the computer facilities managed under this contract provides insight into its effectiveness. Quantifiable improvements in operational uptime or threat reduction capabilities would demonstrate value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HDTRA118R0002
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1760 RESTON PKWY STE 515, RESTON, VA, 20190
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,297,988
Exercised Options: $21,297,988
Current Obligation: $21,297,988
Actual Outlays: $8,675,454
Subaward Activity
Number of Subawards: 20
Total Subaward Amount: $3,995,266
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA118D0011
IDV Type: IDC
Timeline
Start Date: 2018-08-20
Current End Date: 2024-07-31
Potential End Date: 2024-07-31 00:00:00
Last Modified: 2025-07-14
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